
A key supplier to Whole Foods Market is set to lay off hundreds of workers in Wisconsin, underscoring ongoing shifts in the U.S. grocery supply chain. The layoffs will impact nearly 500 workers, sending shockwaves through the small town of Sturtevant.
UNFI announces layoffs
United Natural Foods, Inc. (UNFI), one of the largest wholesale distributors of natural and organic foods in the country—and a primary distributor for Whole Foods—has announced plans to eliminate 443 jobs as it shuts down a distribution center in Sturtevant, located in Racine County.
According to state filings, the layoffs are scheduled to begin on June 20, 2026, with the closure expected to be completed by early August. The impacted roles span warehouse operations, transportation, management, and support staff, affecting a wide cross-section of the facility’s workforce.
Supply chain overhaul tied to Whole Foods partner
UNFI has long played a central role in stocking shelves at Whole Foods locations nationwide, making the company a critical link in the natural and organic grocery ecosystem. The Wisconsin closure reflects a broader strategy to streamline that network.
The company is consolidating operations into a larger, more technologically advanced distribution center in Illinois. This newer facility is designed to handle higher volumes with increased automation, allowing UNFI to improve efficiency while reducing operating costs.
Automation reshaping grocery jobs
While UNFI continues to invest in its infrastructure, the shift highlights a growing trend across the grocery distribution industry: fewer facilities, more automation, and reduced reliance on manual labor.
For Wisconsin, the impact is immediate. The Sturtevant facility has been a significant local employer, and its closure represents a substantial loss of jobs in the region.
As one of Whole Foods’ most important suppliers restructures, the layoffs illustrate how even well-established partnerships in the grocery sector are evolving—often at the expense of traditional warehouse roles.
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